Polaris Reports Sales Dip
Minneapolis-based Polaris Industries showed a slight increase in overall sales for the first quarter, but a corresponding decrease in off-road vehicle sales. Total North American retail sales were down nine percent for the quarter, with total ORV dealer inventory down 10%.
Third quarter net income was $32.3 million, or $0.50 per diluted share, for the quarter ended September 30, 2016 compared to $155.2 million, or $2.30 per diluted share reported in the third quarter of 2015. Sales for the third quarter of 2016 totaled $1,185.1 million, down 19 percent from last year’s third quarter sales of $1,456.0 million.
The sharp drop was attributed primarily to expenses for several recalls and “safety improvement initiatives.” According to CEO Scott Wine, “In addition to these recall challenges, we continued to face a weak overall powersports industry, but were encouraged by continued retail strength for Indian and our overall motorcycle business, and the return to growth for side-by-sides in September.”
Polaris’s ORV and snowmobile sales decreased 23 percent from the third quarter of 2015 to $923.4 million. Gross profits decreased 40 percent. Motorcycle sales decreased three percent, but Victory and Indian motorcycles reported increased vehicle sales growth, while Slingshot sales were down.